Weekly Wrap Up – 12 December 2025
Stay informed on Australia’s latest political, policy and economic developments with GRACosway, Australia’s leading public affairs and strategic communications firm. Subscribe to our free publication here for insights on government relations, corporate and financial communications, and issues shaping business and policy.
While the Government enjoys a commanding majority in the House of Representatives, this week showed the Senate is where the legislative power lies.
The Government’s agreement with the Greens on its Budget tax changes is the latest example of a familiar parliamentary dynamic. Much like last year’s reforms to the EPBC Act, the Government has once again turned to the Greens to secure the numbers needed to pass legislation through the upper house. The deal aims to deliver a legislative victory for the Government before Parliament rises for the winter recess. However, it has come at a price.
The political trade-off appears to be time. In exchange for Greens support on tax, the Government agreed to an eight-week extension of the Senate inquiry into its NDIS reforms. For a Government increasingly concerned about the trajectory of NDIS spending, delaying legislation designed to improve the scheme’s long-term sustainability carries both fiscal and political consequences. In other words, what appears to be a win today may create challenges tomorrow.
Meanwhile, buoyed by rising polling numbers, Pauline Hanson continues to occupy far more political space than her parliamentary numbers would suggest. Her National Press Club address last week sparked debate on everything from paid parental leave to multiculturalism, drawing responses from Cabinet Ministers Tanya Plibersek, Katy Gallagher and Clare O’Neil, while placing Angus Taylor and Ted O’Brien on uncomfortable terrain. Once again, One Nation demonstrated its ability to shape the national conversation and unsettle both major parties.
Outside Parliament, the cost-of-living debate remains firmly front of mind. As winter deepens, Chris Bowen has tasked the ACCC and the AER with investigating unexpected power price increases, despite expectations that this would not occur due to the latest Default Market Offer.
Parliament continues next week, where the Government is expected to secure its legislative wins; meanwhile, politically, pressure continues over cost of living, public spending, and cultural issues.
Top talking points
Parliament: Federal Parliament reconvened for the final sitting fortnight ahead of the winter recess.
Fuel Excise Extended: Anthony Albanese announced an extension of the fuel excise reduction through July, with the rate reduced to 16 cents per litre.
Emergency Environment Ministers Meeting: Murray Watt convened an Environment Ministers Meeting to coordinate responses to emerging H5N1 bird flu cases.
National Press Club: Ted O’Brien addressed the National Press Club, discussing the Coalition’s approach to foreign policy.
State Budgets: The New South Wales and Queensland governments handed down their 2026-27 Budgets. GRACosway’s analysis of the NSW Budget can be read here, and Queensland Budget here.
Making headlines this week
Senate Negotiations
Community Strong Australia
Independent MPs Zali Steggall and Allegra Spender launched Community Strong Australia, a new centrist political party pitched at the “politically homeless” and aimed at supporting community-backed candidates. The party will operate without a formal leader, reflecting its emphasis on grassroots decision-making rather than traditional party hierarchies. Steggall positioned the party as an alternative to growing political polarisation, advocating for “reason over rage” and a stronger political centre. While several prominent crossbench independents, including David Pocock, Monique Ryan and Kate Chaney, have declined to join, the party is expected to recruit community-backed candidates ahead of the 2028 Federal Election. The move is also widely seen as part of a broader effort by the community independent movement to adapt to the effects of the Electoral Legislation Amendment (Electoral Reform) Act 2024. These reforms have made it more difficult for independents to raise and deploy campaign funds, while party structures retain access to higher national spending caps and fundraising advantages. Following its formal application to the AEC, the new party is expected to be officially registered by October.
Things to watch
29 June: Federal Parliament will sit.
29 June: David Janetzki will deliver the Queensland State Budget Address 2026 at CEDA.
1 July: Tim Duggan will address the National Press Club, discussing the future of Australian media.
1 July: The ABS will release Building Approvals data.
2 July: Penny Sharpe will discuss the NSW Energy Outlook at CEDA.
2 July: The ABS will release International Trade data.
Payments, Financial System Resilience, and Committee Report Moves
The RBA released its Review of Payments System Regulation Issues Paper, seeking feedback on priority reforms to promote competition, efficiency and safety in payments. This includes merchant choice, account-to-account payments, competition with card schemes and BNPL, mobile wallets, fraud prevention and cryptography.
The Council of Financial Regulators (CFR) quarterly statement found Australia’s financial system remains resilient despite geopolitical instability, with cyber threats and artificial intelligence identified as emerging risks. The CFR called for stronger contingency planning, payment resilience and cybersecurity measures, and noted ongoing work on wholesale cash distribution reform.
The Economics Legislation Committee tabled its report on the Competition and Consumer Amendment (Unfair Trading Practices) Bill 2026, noting strong evidence supporting the extension of unfair trading protections into financial services to avoid regulatory gaps and ensure consistent consumer safeguards. The Committee ultimately recommended that the Senate pass the Bill.
US Embassy, Australia-Canada Defence Procurement, and ASIO Developments
At Canberra’s United States Embassy event, Anthony Albanese commemorated the 250th anniversary of the United States’ Declaration of Independence. He also acknowledged the 75th anniversary of the ANZUS Treaty, highlighting the strength of the alliance and optimism about its future.
Richard Marles signed an agreement with Canada for the export of an Australian-developed Over the Horizon Radar (OTHR) system, representing Australia’s largest-ever defence export deal. Valued at $2.5 billion, the agreement is the first international sale of Australia’s OTHR technology.
In his annual threat assessment, ASIO director-general Mike Burgess defended ASIO’s resourcing decisions in the years leading up to the Bondi terror attack and shared that ASIO is facing an “unprecedented” level of threats.
Energy Investigation, EPR Hearings, and Critical Minerals Declaration
Chris Bowen directed the ACCC and AER to investigate unexpected electricity price increases, particularly sharp rises in fixed daily supply charges in retailer plans that are set to take effect from July.
The Senate Standing Committee on Environment and Communications conducted public hearings into the Greens’ Extended Producer Responsibility Scheme for Packaging (No Time to Waste) Bill 2026, which would shift Australia’s packaging framework from voluntary targets to a mandatory producer responsibility scheme.
Australia endorsed the G7 Critical Minerals Declaration. The declaration supports global efforts to reduce supply vulnerabilities and underpins the clean energy transition, advanced manufacturing capacity and defence-industrial resilience.
Scams Prevention Framework, Infrastructure and New South Wales Planning Reforms
The Australian National Audit Office found Treasury is largely prepared to implement the Scams Prevention Framework but lacks adequate arrangements to monitor, report on and evaluate whether it achieves its intended objectives.
Catherine King announced that the Federal and New South Wales governments will jointly invest an additional $600 million to upgrade Elizabeth Drive and Fifteenth Avenue in Western Sydney, improving access to the new Western Sydney International Airport.
The New South Wales Government committed $32.3 million to modernise the NSW Planning Portal, pilot AI-enabled processing tools, and establish a Modern Methods of Construction Innovation Facility for large-scale production of prefabricated and modular building components.
Paid Parental Leave, Universities Accord Bill, and First Nations Developments
From 1 July, eligible families will receive $30,000 in paid parental leave under the Paid Parental Leave Amendment (More Support for Working Families) Act 2023, with payments increasing to $1,005 per week. Annual income thresholds will also rise, with the individual income limit increasing to $186,487 and the family income limit to $386,525.
Jason Clare introduced the Universities Accord (Opening the Doors of Opportunity) Bill. In line with Universities Accord reforms, the Bill expands access to higher education through demand-driven university places and needs-based funding, with a focus on disadvantaged, regional and First Nations students.
Jodi Cassar has been appointed Interim First Nations Aged Care Commissioner. Cassar will lead Aboriginal and Torres Strait Islander aged care reforms pending the appointment of a permanent Commissioner.